Boston Properties (BXP) 10-K 25 Feb 10 2009 FY Annual report Financial data

Statement Of Financial Position

Statement Of Financial Position Unclassified - Real Estate Operations (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008
ASSETS
Real estate, at cost:	$11,099,558	$10,625,207
Less: accumulated depreciation	(2,033,677)	(1,768,785)
Total real estate	9,065,881	8,856,422
Cash and cash equivalents	1,448,933	241,510
Cash held in escrows	21,867	21,970
Investment in securities	9,946	11,590
Tenant and other receivables (net of allowance for doubtful accounts of $4,125 and $4,006, respectively)	93,240	68,743
Related party note receivable	270,000	270,000
Accrued rental income (net of allowance of $2,645 and $15,440, respectively)	363,121	316,711
Deferred charges, net	294,395	325,369
Prepaid expenses and other assets	17,684	22,401
Investments in unconsolidated joint ventures	763,636	782,760
Total assets	12,348,703	10,917,476
Liabilities:
Mortgage notes payable, net	2,643,301	2,660,642
Unsecured senior notes (net of discount of $2,611 and $2,625, respectively)	2,172,389	1,472,375
Unsecured exchangeable senior notes (net of discount of $15,529 and $21,101, respectively)	1,904,081	1,859,867
Unsecured line of credit	0	100,000
Accounts payable and accrued expenses	220,089	171,791
Dividends and distributions payable	80,536	97,162
Accrued interest payable	76,058	67,132
Other liabilities	127,538	173,750
Total liabilities	7,223,992	6,602,719
Commitments and contingencies	-	-
Noncontrolling interest:
Redeemable preferred units of the Operating Partnership	55,652	55,652
Stockholders' equity attributable to Boston Properties, Inc.:
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding	0	0
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding	0	0
Common stock, $.01 par value, 250,000,000 shares authorized, 138,958,910 and 121,259,555 issued and 138,880,010 and 121,180,655 outstanding in 2009 and 2008, respectively	1,389	1,212
Additional paid-in capital	4,373,679	3,559,841
Earnings in excess of dividends	95,433	154,953
Treasury common stock at cost, 78,900 shares in 2009 and 2008	(2,722)	(2,722)
Accumulated other comprehensive loss	(21,777)	(24,291)
Total stockholders' equity attributable to Boston Properties, Inc.	4,446,002	3,688,993
Noncontrolling interests:
Common units of the Operating Partnership	617,386	563,212
Property partnerships	5,671	6,900
Total equity	5,069,059	4,259,105
Total liabilities and equity	$12,348,703	$10,917,476

1_Statement Of Financial Positi

Statement Of Financial Position Unclassified - Real Estate Operations (Parenthetical) (USD $)
In Thousands, except Share data	Dec. 31, 2009	Dec. 31, 2008
Tenant and other receivables, allowance for doubtful accounts	$4,125	$4,006
Accrued rental income, allowance	2,645	15,440
Unsecured senior notes, discount	2,611	2,625
Unsecured exchangeable senior notes, discount	$15,529	$21,101
Excess stock, par value	0.01	0.01
Excess stock, shares authorized	150,000,000	150,000,000
Excess stock, issued	0	0
Excess stock, outstanding	0	0
Preferred stock, par value	0.01	0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value	0.01	0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, issued	138,958,910	121,259,555
Common stock, outstanding	138,880,010	121,180,655
Treasury common stock, shares	78,900	78,900

Statement Of Income Real Estate

Statement Of Income Real Estate Excluding REITs (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Rental:
Base rent	$1,185,431	$1,129,215	$1,084,308
Recoveries from tenants	200,899	204,732	184,929
Parking and other	66,597	68,105	64,982
Total rental revenue	1,452,927	1,402,052	1,334,219
Hotel revenue	30,385	36,872	37,811
Development and management services	34,878	30,518	20,553
Interest and other	4,059	18,958	89,706
Total revenue	1,522,249	1,488,400	1,482,289
Operating:
Rental	501,799	488,030	455,840
Hotel	23,966	27,510	27,765
General and administrative	75,447	72,365	69,882
Interest	322,833	295,322	302,980
Depreciation and amortization	321,681	304,147	286,030
Loss from suspension of development	27,766	0	0
Net derivative losses	0	17,021	0
Losses (gains) from investments in securities	(2,434)	4,604	0
Losses from early extinguishments of debt	510	0	3,417
Total expenses	1,271,568	1,208,999	1,145,914
Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and other assets, discontinued operations and net income attributable to noncontrolling interests	250,681	279,401	336,375
Income (loss) from unconsolidated joint ventures	12,058	(182,018)	20,428
Gains on sales of real estate and other assets	11,760	33,340	929,785
Income from continuing operations	274,499	130,723	1,286,588
Discontinued operations:
Income from discontinued operations	0	0	7,274
Gains on sales of real estate from discontinued operations	0	0	259,519
Net income	274,499	130,723	1,553,381
Net income attributable to noncontrolling interests:
Noncontrolling interests in property partnerships	(2,778)	(1,997)	(84)
Noncontrolling interest-common units of the Operating Partnership	(35,534)	(14,392)	(51,978)
Noncontrolling interest in gains on sales of real estate and other assets-common units of the Operating Partnership	(1,579)	(4,838)	(140,547)
Noncontrolling interest in discontinued operations-common units of the Operating Partnership	0	0	(40,237)
Noncontrolling interest-redeemable preferred units of the Operating Partnership	(3,594)	(4,226)	(10,429)
Net income	231,014	105,270	1,310,106
Basic earnings per common share attributable to Boston Properties, Inc.:
Income from continuing operations	1.76	0.88	9.07
Discontinued operations	$0	$0	1.91
Net income	1.76	0.88	10.98
Weighted average number of common shares outstanding	131,050	119,980	118,839
Diluted earnings per common share attributable to Boston Properties, Inc.:
Income from continuing operations	1.76	0.87	8.92
Discontinued operations	$0	$0	1.88
Net income	1.76	0.87	10.8
Weighted average number of common and common equivalent shares outstanding	131,512	121,299	120,780
Amounts attributable to Boston Properties, Inc.:
Income from continuing operations	231,014	105,270	1,083,550
Discontinued operations	0	0	226,556
Net income	$231,014	$105,270	$1,310,106

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Thousands	Common Stock	Additional Paid-in Capital	Earnings in excess of Dividends	Treasury Stock, at cost	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Beginning Balance at Dec. 31, 2006	$1,175	$3,166,054	$104,811	($2,722)	($1,601)	$545,626	$3,813,343
Beginning Balance (in shares) at Dec. 31, 2006	117,503
Conversion of operating partnership units to Common Stock (in shares)	1,342
Conversion of operating partnership units to Common Stock	13	143,297				(30,590)	112,720
Allocation of noncontrolling interest		282				(282)	0
Allocation of noncontrolling interest-redeemable preferred units						30,869	30,869
Allocated net income for the year			1,310,106			232,846	1,542,952
Dividends/distributions declared			(1,038,521)			(182,294)	(1,220,815)
Shares issued pursuant to stock purchase plan (in shares)	6
Shares issued pursuant to stock purchase plan		1,241					1,241
Net activity from stock option and incentive plan (in shares)	651
Net activity from stock option and incentive plan	7	24,896				9,931	34,834
Equity component of unsecured exchangeable senior notes		80,788					80,788
Contributions from noncontrolling interests in property partnerships						4,311	4,311
Distributions to noncontrolling interests in property partnerships						(10,632)	(10,632)
Consolidation of noncontrolling interest in property partnership						19,588	19,588
Effective portion of interest rate contracts					(21,889)	(3,767)	(25,656)
Amortization of interest rate contracts					(181)	(31)	(212)
Ending Balance (in shares) at Dec. 31, 2007	119,502
Ending Balance at Dec. 31, 2007	1,195	3,416,558	376,396	(2,722)	(23,671)	615,575	4,383,331
Conversion of operating partnership units to Common Stock (in shares)	630
Conversion of operating partnership units to Common Stock	7	32,540				(10,906)	21,641
Allocation of noncontrolling interest		24,287				(24,287)	0
Allocation of noncontrolling interest-redeemable preferred units						488	488
Allocated net income for the year			105,270			21,227	126,497
Dividends/distributions declared			(326,713)			(57,608)	(384,321)
Shares issued pursuant to stock purchase plan (in shares)	8
Shares issued pursuant to stock purchase plan		713					713
Net activity from stock option and incentive plan (in shares)	1,041
Net activity from stock option and incentive plan	10	38,156				21,630	59,796
Equity component of unsecured exchangeable senior notes		91,947					91,947
Issuances of noncontrolling interest-common units						25,000	25,000
Distributions to noncontrolling interests in property partnerships						(20,902)	(20,902)
Capped call transaction costs		(44,360)					(44,360)
Effective portion of interest rate contracts					(622)	(105)	(727)
Amortization of interest rate contracts					2		2
Ending Balance (in shares) at Dec. 31, 2008	121,181
Ending Balance at Dec. 31, 2008	1,212	3,559,841	154,953	(2,722)	(24,291)	570,112	4,259,105
Conversion of operating partnership units to Common Stock (in shares)	139
Conversion of operating partnership units to Common Stock	1	3,969				(3,970)	0
Allocation of noncontrolling interest		(42,490)				42,490	0
Allocated net income for the year			231,014			39,891	270,905
Dividends/distributions declared			(290,534)			(46,574)	(337,108)
Sale of Common Stock, net of offering costs (in shares)	17,250
Sale of Common Stock, net of offering costs	173	841,737					841,910
Shares issued pursuant to stock purchase plan (in shares)	12
Shares issued pursuant to stock purchase plan		620					620
Net activity from stock option and incentive plan (in shares)	298
Net activity from stock option and incentive plan	3	10,002				24,725	34,730
Distributions to noncontrolling interests in property partnerships						(4,007)	(4,007)
Amortization of interest rate contracts					2,514	390	2,904
Ending Balance (in shares) at Dec. 31, 2009	138,880
Ending Balance at Dec. 31, 2009	$1,389	$4,373,679	$95,433	($2,722)	($21,777)	$623,057	$5,069,059

Statement Of Other Comprehensiv

Statement Of Other Comprehensive Income (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income	$274,499	$130,723	$1,553,381
Other comprehensive income (loss):
Effective portion of interest rate contracts	0	(727)	(25,656)
Amortization of interest rate contracts	2,904	2	(212)
Other comprehensive income (loss)	2,904	(725)	(25,868)
Comprehensive income	277,403	129,998	1,527,513
Comprehensive income attributable to noncontrolling interests	(43,875)	(25,348)	(239,477)
Comprehensive income attributable to Boston Properties, Inc.	$233,528	$104,650	$1,288,036

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect Real Estate (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net income	$274,499	$130,723	$1,553,381
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	321,681	304,147	288,978
Non-cash portion of interest expense	55,664	39,323	28,766
Non-cash compensation expense	26,636	23,106	12,358
Non-cash rental revenue	(3,600)	(2,023)	0
Losses (gains) on investments in securities	(2,434)	4,604	0
Net derivative losses	0	17,021	0
Losses from early extinguishments of debt	10	0	838
Loss from suspension of development	27,766	0	0
(Income) loss from unconsolidated joint ventures	(12,058)	182,018	(20,428)
Distributions of net cash flow from operations of unconsolidated joint ventures	12,676	9,589	7,157
Gains on sales of real estate and other assets	(11,760)	(33,340)	(1,189,304)
Change in assets and liabilities:
Cash held in escrows	103	3,548	(2,564)
Tenant and other receivables, net	1,844	2,663	(1,341)
Accrued rental income, net	(46,410)	(20,001)	(38,303)
Prepaid expenses and other assets	4,717	(2,642)	10,686
Accounts payable and accrued expenses	14,848	5,762	3,833
Accrued interest payable	8,926	12,645	7,046
Other liabilities	(9,452)	(54,023)	5,318
Tenant leasing costs	(46,280)	(57,809)	(34,767)
Total adjustments	342,877	434,588	(921,727)
Net cash provided by operating activities	617,376	565,311	631,654
Cash flows from investing activities:
Acquisitions/additions to real estate	(442,844)	(580,377)	(1,134,870)
Investments in securities	0	0	(22,584)
Proceeds from redemptions of investments in securities	4,078	14,697	0
Net investments in unconsolidated joint ventures	(7,835)	(896,027)	(7,790)
Cash recorded upon consolidation	0	0	3,232
Net proceeds from the sale/financing of real estate placed in escrow	0	0	(161,321)
Net proceeds from the sale/financing of real estate released from escrow	0	161,321	0
Issuance of note receivable	0	(270,000)	0
Proceeds from note receivable	0	123,000	0
Net proceeds from the sales of real estate and other assets	0	127,307	1,897,988
Net cash provided by (used in) investing activities	(446,601)	(1,320,079)	574,655
Cash flows from financing activities:
Borrowings on unsecured line of credit	0	1,391,000	260,000
Repayments of unsecured line of credit	(100,000)	(1,291,000)	(260,000)
Repayments of mortgage notes payable	(125,238)	(603,054)	(1,196,618)
Proceeds from mortgage notes payable	107,929	537,569	1,097,369
Proceeds from unsecured exchangeable senior notes	0	647,046	759,575
Proceeds from unsecured senior notes	699,517	0	0
Proceeds from real estate financing transactions	0	0	1,610
Payments on real estate financing transactions	0	(6,208)	(10,610)
Advance from joint venture partners	0	30,000	0
Repayment of advance from joint venture partners	0	(30,000)	0
Dividends and distributions	(357,328)	(1,235,767)	(1,143,470)
Proceeds from equity transactions	850,624	37,410	23,479
Equity component of unsecured exchangeable senior notes	0	91,947	80,788
Capped call transaction costs	0	(44,360)	0
Contributions from (distributions to) noncontrolling interest holders, net	(4,007)	(20,909)	4,304
Repayment of note payable	(25,000)	0	0
Redemption of noncontrolling interest	0	0	(35,625)
Deferred financing costs	(9,849)	(14,317)	(5,978)
Net cash provided by (used in) financing activities	1,036,648	(510,643)	(425,176)
Net increase (decrease) in cash and cash equivalents	1,207,423	(1,265,411)	781,133
Cash and cash equivalents, beginning of the year	241,510	1,506,921	725,788
Cash and cash equivalents, end of the year	1,448,933	241,510	1,506,921
Supplemental disclosures:
Cash paid for interest	307,059	289,640	300,490
Interest capitalized	48,816	46,286	33,322
Non-cash investing and financing activities:
Additions to real estate included in accounts payable	36,789	18,075	3,827
Mortgage notes payable assumed in connection with the acquisition of real estate	0	0	65,224
Real estate recorded upon consolidation	0	0	120,213
Mortgage notes payable recorded upon consolidation	0	0	79,064
Noncontrolling interest recorded upon consolidation	0	0	19,588
Dividends and distributions declared but not paid	80,536	97,162	944,870
Issuance of OP Units in connection with the acquisition of real estate	0	15,000	0
Issuance of OP Units in connection with an investment in an unconsolidated joint venture	0	10,000	0
Conversions of noncontrolling interests to Stockholders' Equity	3,970	10,906	30,590
Basis adjustment in connection with conversions of noncontrolling interests to Stockholders' Equity	0	21,641	112,721
Note receivable issued in connection with the transfer of real estate	0	123,000	0
Issuance of restricted securities to employees and directors	$22,964	$43,536	$17,658

Organization and Basis of Prese

Organization and Basis of Presentation
	12 Months Ended Dec. 31, 2009 USD / shares
Organization and Basis of Presentation	1. Organization and Basis of Presentation Organization Boston Properties, Inc. (the Company), a Delaware corporation, is a self-administered and self-managed real estate investment trust (REIT). The Company is the sole general partner of Boston Properties Limited Partnership (the Operating Partnership) and at December31, 2009 owned an approximate 86.0% (84.4% at December31, 2008) general and limited partnership interest in the Operating Partnership. Partnership interests in the Operating Partnership are denominated as common units of partnership interest (also referred to as OP Units), long term incentive units of partnership interest (also referred to as LTIP Units) or preferred units of partnership interest (also referred to as Preferred Units). In addition, in February 2008, the Company issued LTIP Units in connection with the granting to employees of 2008 outperformance awards (also referred to as 2008 OPP Units). Because the rights, preferences and privileges of 2008 OPP Units differ from other LTIP Units granted to employees as part of the annual compensation process, unless specifically noted otherwise, all references to LTIP Units exclude 2008 OPP Units. For a complete description of the terms of the 2008 OPP Units (See Note 17). Unless specifically noted otherwise, all references to OP Units exclude units held by the Company. A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the time of issuance of OP Units to particular holders that may restrict such redemption right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership must redeem such OP Unit for cash equal to the then value of a share of common stock of the Company (Common Stock). In lieu of a cash redemption, the Company may elect to acquire such OP Unit for one share of Common Stock. Because the number of shares of Common Stock outstanding at all times equals the number of OP Units that the Company owns, one share of Common Stock is generally the economic equivalent of one OP Unit, and the quarterly distribution that may be paid to the holder of an OP Unit equals the quarterly dividend that may be paid to the holder of a share of Common Stock. An LTIP Unit is generally the economic equivalent of a share of restricted common stock of the Company. LTIP Units, whether vested or not, will receive the same quarterly per unit distributions as OP Units, which equal per share dividends on Common Stock (See Note 17). At December31, 2009, there was one series of Preferred Units outstanding (i.e., Series Two Preferred Units). The Series Two Preferred Units bear a distribution that is set in accordance with an amendment to the partnership agreement of the Operating Partnership. Preferred Units may also be converted into OP Units at the election of the holder thereof or the Operating Partnership in accordance with the amendment to the partnership agreement (See Note 11). All references to the Company refer to Boston Properties, Inc. and its consolidated subsidiaries, including the Operating Partn

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Reclassifications and Adoption of New Accounting Pronouncements Certain prior year amounts have been reclassified to conform to the current year presentation. In addition, certain prior year amounts have been revised as a result of the adoption on January1, 2009 of (1)Accounting Standards Codification (ASC) 470-20 Debt with Conversion and Other Options (ASC 470-20) (formerly known as FASB Staff Position (FSP) No. APB 14-1 Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP No. APB 14-1)) (See Note 8), (2)the guidance included in ASC 810 Consolidation (ASC 810) (formerly known as SFAS No.160, Noncontrolling Interests in Consolidated Financial Statementsan amendment of ARB No.51 (SFAS No.160)) and ASC 480-10-S99 Distinguishing Liabilities from Equity (ASC 480-10-S99) (formerly known as EITF Topic No. D-98 Classification and Measurement of Redeemable Securities (Amended)) (See Note 11) and (3)the guidance included in ASC 260-10 Earnings Per Share (ASC 260-10) (formerly known as FSP EITF 03-06-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities (FSP EITF 03-06-1)) (See Note 15). Real Estate Upon acquisitions of real estate, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, above- and below-market leases, origination costs, acquired in-place leases, other identified intangible assets and assumed liabilities in accordance with guidance included in Accounting Standards Codification (ASC) 805 Business Combinations (ASC 805) (formerly known as Statement of Financial Accounting Standards (SFAS) No.141(R) (SFAS No.141(R))), and allocates the purchase price to the acquired assets and assumed liabilities, including land at appraised value and buildings as if vacant. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants credit quality and expectations of lease renewals. Based on its acquisitions to date, the Companys allocation to customer relationship intangible assets has been immaterial. The Company records acquired above- and below-market leases at their fair value (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1)the contractual amounts to be paid pursuant to each in-place lease a

Real Estate

Real Estate
	12 Months Ended Dec. 31, 2009 USD / shares
Real Estate	3. Real Estate Real estate consisted of the following at December31 (in thousands): 2009 2008 Land $ 1,983,064 $ 1,976,489 Land held for future development 718,525 228,300 Buildings and improvements 6,888,421 6,699,191 Tenant improvements 922,224 862,315 Furniture, fixtures and equipment 23,679 22,929 Construction in progress 563,645 835,983 Total 11,099,558 10,625,207 Less: Accumulated depreciation (2,033,677 ) (1,768,785 ) $ 9,065,881 $ 8,856,422 Development On January16, 2009, the Company acquired the development rights for the site at 17 Cambridge Center in Cambridge, Massachusetts for approximately $11.4 million. On November6, 2009, the Company acquired the land parcel at 17 Cambridge Center in Cambridge, Massachusetts for a gross purchase price of approximately $6.0 million. On February6, 2009, the Company announced that it was suspending construction on its 1,000,000 square foot office building at 250 West 55th Street in New York City. During December 2009, the Company completed the construction of foundations and steel/deck to grade to facilitate a restart of construction in the future and as a result ceased interest capitalization on the project. During the year ended December31, 2009, the Company recognized a loss of approximately $27.8 million related to the suspension of development (See Note 22). On April1, 2009, the Company placed in-service One Preserve Parkway, an approximately 183,000 net rentable square foot ClassA office property located in Rockville, Maryland. The property is 65% leased. On May31, 2009, a consolidated joint venture in which the Company has a 66.67% interest placed in-service the Offices at Wisconsin Place, an approximately 299,000 net rentable square foot ClassA office property located in Chevy Chase, Maryland. The property is 91% leased. On August1, 2009, the Company placed in-service Democracy Tower, an approximately 235,000 net rentable square foot ClassA office property located in Reston, Virginia. The property is 100% leased. On October9, 2009, the Company placed in-service 701 Carnegie Center, an approximately 120,000 net rentable square foot ClassA office property located in Princeton, New Jersey. The property is 100% leased. Dispositions On April14, 2008, the Company sold a parcel of land located in Washington, DC for approximately $33.7 million. The Company had previously entered into a development management agreement with the buyer to develop a ClassA office property on the parcel totaling approximately 165,000 net rentable square feet. Due to the Companys involvement in the construction of the project, the gain on sale was deferred and is being recognized over the project construction period generally based on the percentage of total project costs incurred to estimated total project costs. As a result, the Company recognized a gain on sale during the year ended December31, 2009 of approximately $11.8 million. The Company has recognized a cumulative gain o

Deferred Charges

Deferred Charges
	12 Months Ended Dec. 31, 2009 USD / shares
Deferred Charges	4. Deferred Charges Deferred charges consisted of the following at December31, (in thousands): 2009 2008 Leasing costs (and lease related intangibles) $ 399,302 $ 416,299 Financing costs 76,915 67,594 476,217 483,893 Less: Accumulated amortization (181,822 ) (158,524 ) $ 294,395 $ 325,369

Investments in Unconsolidated J

Investments in Unconsolidated Joint Ventures
	12 Months Ended Dec. 31, 2009 USD / shares
Investments in Unconsolidated Joint Ventures	5. Investments in Unconsolidated Joint Ventures The investments in unconsolidated joint ventures consists of the following at December31, 2009: Entity Properties Nominal% Ownership Square 407 Limited Partnership MarketSquareNorth 50.0% The Metropolitan Square Associates LLC Metropolitan Square 51.0%(1) BP/CRF 901 New York Avenue LLC 901NewYorkAvenue 25.0%(2) WP Project Developer LLC Wisconsin Place Land and Infrastructure 23.9%(3) Wisconsin Place Retail LLC Wisconsin Place Retail 5.0% Eighth Avenue and 46th Street Entities Eighth Avenue and 46th Street 50.0%(4) Boston Properties Office Value-Added Fund, L.P. 300 BillericaRoad, One Two Circle Star Way and Mountain View Research and Technology Parks 36.9%(2)(5) Annapolis Junction NFM, LLC Annapolis Junction 50.0%(6) 767 Venture, LLC The General Motors Building 60.0%(1) 2 GCT Venture LLC Two Grand Central Tower 60.0%(1) 540 Madison Venture LLC 540 Madison Avenue 60.0%(1) 125 West 55th Street Venture LLC 125 West 55th Street 60.0%(1) (1) The Company has determined that these entities are not VIEs and that its joint venture partners have substantive participating rights with respect to the assets and operations of the properties, pursuant to the joint venture agreements. (2) The Companys economic ownership can increase based on the achievement of certain return thresholds. (3) Represents the Companys effective ownership interest. The Company has a 66.67%, 5% and 0% interest in the office, retail and residential joint venture entities, respectively, each of which owns a 33.33% interest in the entity owning the land and infrastructure of the project. (4) This property is not in operation and consists of assembled land. (5) Represents the Companys effective ownership interest. The Company has a 25.0% interest in the 300 Billerica Road and One Two Circle Star Way properties and a 39.5% interest in the Mountain View Research and Technology Park properties. (6) Two of the three Annapolis Junction land parcels are undeveloped land. Certain of the Companys joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint ventures at an agreed upon fair value. Under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. During 2009, the Company recognized non-cash impairment charges which represented the other-than-temporary decline in the fair value below the carrying value of the Companys investment in its Value-Added Fund. In accordance with ASC 323 Investments-Equity Method and Joint Ventures (ASC 323) (formerly known as Accounting Principles Board Opinion No.18 The Equity Method of Accounting for Investments in Common Stock (APB No.18)), a loss in value of an investment under the equity method of accounting, which is other than a temporary decline, must be recognized. Unlike the guidance in ASC 360 Property, Plant and Equipment (ASC 360) (formerly known as

Mortgage Notes Payable

Mortgage Notes Payable
	12 Months Ended Dec. 31, 2009 USD / shares
Mortgage Notes Payable	6. Mortgage Notes Payable The Company had outstanding mortgage notes payable totaling approximately $2.6 billion and $2.7 billion as of December31, 2009 and 2008, respectively, each collateralized by one or more buildings and related land included in real estate assets. The mortgage notes payable are generally due in monthly installments and mature at various dates through August1, 2021. Fixed rate mortgage notes payable totaled approximately $2.2 billion and $2.4 billion at December31, 2009 and 2008, respectively, with contractual interest rates ranging from 5.55% to 8.13%per annum at December31, 2009 and 5.55% to 8.54%per annum at December31, 2008 (with weighted-averages of 6.45% and 6.50% at December31, 2009 and 2008, respectively). Variable rate mortgage notes payable (including construction loans payable) totaled approximately $393.4 million and $285.5 million at December31, 2009 and 2008, respectively, with interest rates ranging from 1.00% to 3.85% above the London Interbank Offered Rate (LIBOR) at December31, 2009 and ranging from 1.00% to 1.75% above LIBOR at December31, 2008. As of December31, 2009 and 2008, the LIBOR rate was 0.23% and 0.44%, respectively. On April21, 2009, the Company obtained construction financing totaling $215.0 million collateralized by its Atlantic Wharf development project located at 280 Congress Street in Boston, Massachusetts. Atlantic Wharf, formerly known as Russia Wharf, is a mixed-use project totaling approximately 860,000 net rentable square feet. Wellington Management Company, LLP has leased approximately 450,000 square feet of the office space in the development commencing in the first quarter of 2011. The construction financing bears interest at a variable rate equal to LIBOR plus 3.00%per annum and matures on April21, 2012 with two, one-year extension options, subject to certain conditions. There were no amounts drawn on the construction facility as of December31, 2009. On June9, 2009, the Company used available cash to repay the mortgage loan collateralized by its Reservoir Place property located in Waltham, Massachusetts totaling approximately $47.8 million. The mortgage loan bore interest at a fixed rate of 7.00%per annum and was scheduled to mature on July1, 2009. There was no prepayment penalty. On June26, 2009, the Company used available cash to repay the mortgage loan collateralized by its Ten Cambridge Center property located in Cambridge, Massachusetts totaling approximately $30.1 million. The mortgage loan bore interest at a fixed rate of 8.27%per annum and was scheduled to mature on May1, 2010. The Company paid a prepayment penalty totaling $0.5 million in connection with the repayment. On July30, 2009, the Company obtained mortgage financing totaling $50.0 million collateralized by its Reservoir Place property located in Waltham, Massachusetts. The mortgage financing currently bears interest at a variable rate equal to LIBOR plus 3.85%per annum and matures on July30, 2014. On August3, 2009, the Company used available cash to repay the mortgage loans collateralized by its 1301 New York Avenue property located in Washington, DC aggregating approxima

Unsecured Senior Notes

Unsecured Senior Notes
	12 Months Ended Dec. 31, 2009 USD / shares
Unsecured Senior Notes	7. Unsecured Senior Notes The following summarizes the unsecured senior notes outstanding as of December31, 2009 (dollars in thousands): Coupon/ StatedRate Effective Rate(1) Principal Amount Maturity Date(2) 10 Year Unsecured Senior Notes 6.250 % 6.381 % $ 750,000 January 15,2013 10 Year Unsecured Senior Notes 6.250 % 6.291 % 175,000 January15,2013 12 Year Unsecured Senior Notes 5.625 % 5.693 % 300,000 April 15, 2015 12 Year Unsecured Senior Notes 5.000 % 5.194 % 250,000 June 1, 2015 10 Year Unsecured Senior Notes 5.875 % 5.967 % 700,000 October15,2019 Total principal 2,175,000 Net discount (2,611 ) Total $ 2,172,389 (1) Yield on issuance date including the effects of discounts on the notes. (2) No principal amounts are due prior to maturity. On October9, 2009, the Companys Operating Partnership completed a public offering of $700.0 million in aggregate principal amount of its 5.875% senior notes due 2019. The notes were priced at 99.931% of the principal amount to yield 5.967% to maturity. The aggregate net proceeds to the Operating Partnership, after deducting underwriter discounts and offering expenses, were approximately $693.7 million. The notes mature on October15, 2019, unless earlier redeemed by the Companys Operating Partnership. The indenture relating to the unsecured senior notes contains certain financial restrictions and requirements, including (1)a leverage ratio not to exceed 60%, (2)a secured debt leverage ratio not to exceed 50%, (3)an interest coverage ratio of greater than 1.50, and (4)an unencumbered asset value of not less than 150% of unsecured debt. At December31, 2009 and 2008, the Company was in compliance with each of these financial restrictions and requirements.

Unsecured Exchangeable Senior N

Unsecured Exchangeable Senior Notes
	12 Months Ended Dec. 31, 2009 USD / shares
Unsecured Exchangeable Senior Notes	8. Unsecured Exchangeable Senior Notes The following summarizes the unsecured exchangeable senior notes outstanding as of December31, 2009 (dollars in thousands): Coupon/ StatedRate Effective Rate(1) Exchange Rate Principal Amount FirstOptional RedemptionDateby Company Maturity Date 3.625% Exchangeable Senior Notes 3.625 % 4.037 % 8.5051 (2) $ 747,500 N/A February15,2014 2.875% Exchangeable Senior Notes 2.875 % 3.462 % 7.0430 (3) 862,500 February20,2012 February 15, 2037 3.750% Exchangeable Senior Notes 3.750 % 3.787 % 10.0066 (4) 450,000 May18,2013 May 15, 2036 Total principal 2,060,000 Net discount (15,529 ) ASC 470-20 (formerly known as FSP No. APB 14-1) Adjustment, net of accumulated amortization (140,390 ) Total $ 1,904,081 (1) Yield on issuance date including the effects of discounts on the notes and excluding the effects of ASC 470-20 (formerly known as FSP No. APB 14-1). (2) The initial exchange rate is 8.5051 shares per $1,000 principal amount of the notes (or an initial exchange price of approximately $117.58 per share of Boston Properties, Inc.s Common Stock). In addition, the Company entered into capped call transactions with affiliates of certain of the initial purchasers, which are intended to reduce the potential dilution upon future exchange of the notes. The capped call transactions are intended to increase the effective exchange price to the Company of the notes from $117.58 to approximately $137.17 per share, representing an overall effective premium of approximately 40% over the closing price on August13, 2008 of $97.98 per share of Boston Properties, Inc.s Common Stock. The net cost of the capped call transactions was approximately $44.4 million. (3) In connection with the special distribution of $5.98 per share of Boston Properties, Inc.s Common Stock declared on December17, 2007, the exchange rate was adjusted from 6.6090 to 7.0430 shares per $1,000 principal amount of notes effective as of December31, 2007, resulting in an exchange price of approximately $141.98 per share of Boston Properties, Inc.s Common Stock. (4) In connection with the special distribution of $5.98 per share of Boston Properties, Inc.s Common Stock declared on December17, 2007, the exchange rate was adjusted from 9.3900 to 10.0066 shares per $1,000 principal amount of notes effective as of December31, 2007, resulting in an exchange price of approximately $99.93 per share of Boston Properties, Inc.s Common Stock. ASC 470-20 (formerly known as FSP No. APB 14-1) requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) to be separately accounted for in a manner that reflects the issuers nonconvertible debt borrowing rate. ASC 470-20 requires that the initial proceeds from the sale of the Operating Par

Unsecured Line of Credit

Unsecured Line of Credit
	12 Months Ended Dec. 31, 2009 USD / shares
Unsecured Line of Credit	9. Unsecured Line of Credit On June6, 2008, the Companys Operating Partnership utilized an accordion feature under its unsecured revolving credit facility (the Unsecured Line of Credit) with a consortium of lenders to increase the current lenders total commitment under the Unsecured Line of Credit from $605.0 million to $923.3 million. On July21, 2008, the Companys Operating Partnership further increased the total commitment from $923.3 million to $1.0 billion. All other material terms under the facility remain unchanged. The Companys Unsecured Line of Credit bears interest at a variable interest rate equal to Eurodollar plus 0.475%per annum and matures on August3, 2010, with a provision for a one-year extension at the option of the Company, subject to certain conditions. The Unsecured Line of Credit is a recourse obligation of the Companys Operating Partnership. Under the Unsecured Line of Credit, a facility fee equal to 0.125%per annum is payable in quarterly installments. The interest rate and facility fee are subject to adjustment in the event of a change in the Operating Partnerships unsecured debt ratings. The Unsecured Line of Credit involves a syndicate of lenders. The Unsecured Line of Credit contains a competitive bid option that allows banks that are part of the lender consortium to bid to make loan advances to the Company at a negotiated LIBOR-based rate. There were no amounts outstanding on the Unsecured Line of Credit at December31, 2009. The Company had an outstanding balance on the Unsecured Line of Credit of $100.0 million at December31, 2008. The weighted-average balance outstanding was approximately $45.2 million and $132.8 million during the years ended December31, 2009 and 2008, respectively. The weighted-average interest rate on amounts outstanding was approximately 0.95% and 3.58% during the year ended December31, 2009 and 2008, respectively. The terms of the Unsecured Line of Credit require that the Company maintain a number of customary financial and other covenants on an ongoing basis, including: (1)a leverage ratio not to exceed 60%, however, theleverage ratio may increase to no greater than 65% provided that itis reduced back to 60% within 180 days, (2)a secured debt leverage ratio not to exceed 55%, (3)a fixed charge coverage ratio of at least 1.40, (4)an unsecured debt leverage ratio not to exceed 60%, however, the unsecured debt leverage ratio may increase to no greater than 65% provided that itis reduced back to 60% within 180 days, (5)a minimum net worth requirement, (6)an unsecured debt interest coverage ratio of at least 1.75 and (7)limitations on permitted investments, development, partially owned entities, business outside of commercial real estate and commercial non-office properties. At December31, 2009 and 2008, the Company was in compliance with each of these financial and other covenant requirements.

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies	10. Commitments and Contingencies General In the normal course of business, the Company guarantees its performance of services or indemnifies third parties against its negligence. The Company has letter of credit and performance obligations of approximately $13.2 million related to lender and development requirements. Certain of the Companys joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint ventures. Under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. In connection with the Companys assumption of the General Motors Buildings secured loan by the Companys unconsolidated joint venture, 767 Venture, LLC, the Company guaranteed the unconsolidated joint ventures obligation to fund various escrows, including tenant improvements, taxes and insurance in lieu of cash deposits. As of December31, 2009, the maximum funding obligation under the guarantee was approximately $23.9million. From time to time, the Company (or the applicable joint venture) has also agreed to guarantee portions of the principal, interest or other amounts in connection with other unconsolidated joint venture borrowings. In addition to the financial guarantees referenced above, the Company has agreed to customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) on certain of its unconsolidated joint venture loans. Concentrations of Credit Risk Management of the Company performs ongoing credit evaluations of tenants and may require tenants to provide some form of credit support such as corporate guarantees and/or other financial guarantees. Although the Companys properties are geographically diverse and the tenants operate in a variety of industries, to the extent the Company has a significant concentration of rental revenue from any single tenant, the inability of that tenant to make its lease payments could have an adverse effect on the Company. Some potential losses are not covered by insurance. The Company carries insurance coverage on its properties of types and in amounts and with deductibles that it believes are in line with coverage customarily obtained by owners of similar properties. In response to the uncertainty in the insurance market following the terrorist attacks of September11, 2001, the Federal Terrorism Risk Insurance Act (as amended, TRIA) was enacted in November 2002 to require regulated insurers to make available coverage for certified acts of terrorism (as defined by the statute). The expiration date of TRIA was extended to December31, 2014 by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA). Currently, the Companys property insurance program per occurrence limits are $1.0 billion for its portfolio insurance program, including coverage for acts of terrorism certified under TRIA. The Company currently insures certain properties, including the General Motors Building located at 767 Fifth Avenue in NewYork, New York (767 Fifth Avenue), in sepa

Noncontrolling Interests

Noncontrolling Interests
	12 Months Ended Dec. 31, 2009 USD / shares
Noncontrolling Interests	11. Noncontrolling Interests Effective January1, 2009, the Company adopted the guidance included in ASC 810 Consolidation (ASC810) (formerly known as SFAS No.160, Noncontrolling Interests in Consolidated Financial Statementsan amendment of ARB No.51 (SFAS No.160)) and ASC 480-10-S99 Distinguishing Liabilities from Equity (ASC 480-10-S99) (formerly known as EITF Topic No. D-98 Classification and Measurement of Redeemable Securities (Amended)), under which noncontrolling interests of the Company (previously known as minority interests) are classified either as a component of equity or in the mezzanine section of the balance sheet as temporary equity depending on the terms of such noncontrolling interests. As a result of the adoption of the guidance included in ASC 810, the Company reclassified the noncontrolling interests in consolidated property partnerships from the mezzanine section of its Consolidated Balance Sheets to equity. The reclassification totaled approximately $6.9 million as of December31, 2008. In addition, the Company reclassified the noncontrolling interests related to the common units of the Operating Partnership not owned by the Company from the mezzanine section of its Consolidated Balance Sheets to equity. The reclassification totaled approximately $563.2 million as of December31, 2008. Noncontrolling interests related to redeemable preferred units of the Operating Partnership continue to be classified in the mezzanine section of the Consolidated Balance Sheets. Under the guidance included in ASC 810, net income encompasses the total income of all consolidated subsidiaries and there is a separate disclosure of the attribution of that income between controlling and noncontrolling interests. The implementation of this standard had no effect on the Companys results of operations. As a result of the adoption of the guidance included in ASC 810, net income attributable to noncontrolling interests is now deducted from net income in the determination of net income attributable to the Company for all periods presented. In addition, other comprehensive income (loss) attributable to noncontrolling interests is now deducted from comprehensive income in the determination of comprehensive income attributable to the Company for all periods presented. Noncontrolling interests relate to the interests in the Operating Partnership not owned by the Company and interests in property partnerships not wholly-owned by the Company. As of December31, 2009, the noncontrolling interests consisted of 19,814,499 OP Units, 1,416,162 LTIP Units, 1,080,938 2008 OPP Units and 1,113,044 Series Two Preferred Units (or 1,460,688 OP Units on an as converted basis) held by parties other than the Company. Noncontrolling InterestRedeemable Preferred Units of the Operating Partnership The Preferred Units at December31, 2009 and 2008 consisted solely of 1,113,044 Series Two Preferred Units, which bear a preferred distribution equal to the greater of (1)the distribution which would have been paid in respect of the Series Two Preferred Unit had such Series Two Preferred Unit been converted into an OP Unit (including both regular and special

Stockholders' Equity

Stockholders' Equity
	1/1/2009 - 12/31/2009 USD / shares
Stockholders' Equity	12. Stockholders Equity As of December31, 2009, the Company had 138,880,010 shares of Common Stock outstanding. On June10, 2009, the Company completed a public offering of 17,250,000 shares of its Common Stock (including 2,250,000 shares issued as a result of the exercise of an overallotment option by the underwriters) at a price to the public of $50.00 per share. The proceeds from this public offering, net of underwriters discounts and offering costs, totaled approximately $841.9 million. On January30, 2009, the Company paid a dividend in the amount of $0.68 per share of Common Stock to shareholders of record as of the close of business on December31, 2008. On April30, 2009, the Company paid a dividend in the amount of $0.68 per share of Common Stock to shareholders of record as of the close of business on March31, 2009. On July31, 2009, the Company paid a dividend in the amount of $0.50 per share of Common Stock to shareholders of record as of the close of business on June30, 2009. On October30, 2009, the Company paid a dividend in the amount of $0.50 per share of Common Stock to shareholders of record as of the close of business on September30, 2009. On December17, 2009, the Companys Board of Directors declared a dividend in the amount of $0.50 per share of Common Stock payable on January29, 2010 to shareholders of record as of the close of business on December31, 2009. During the years ended December31, 2009 and 2008, the Company issued 138,856 and 631,297 shares of its Common Stock, respectively, in connection with the redemption of an equal number of OP Units. During the years ended December31, 2009 and 2008, the Company issued 242,507 and 1,058,133 shares of its Common Stock, respectively, upon the exercise of options to purchase Common Stock by certain employees.

Future Minimum Rents

Future Minimum Rents
	12 Months Ended Dec. 31, 2009 USD / shares
Future Minimum Rents	13. Future Minimum Rents The properties are leased to tenants under net operating leases with initial term expiration dates ranging from 2010 to 2049. The future contractual minimum lease payments to be received (excluding operating expense reimbursements) by the Company as of December31, 2009, under non-cancelable operating leases which expire on various dates through 2049, are as follows: Years Ending December31, (inthousands) 2010 $ 1,114,614 2011 1,115,809 2012 1,047,167 2013 981,599 2014 918,525 Thereafter 4,627,558 No single tenant represented more than 10.0% of the Companys total rental revenue for the years ended December31, 2009, 2008 and 2007.

Segment Reporting

Segment Reporting
	12 Months Ended Dec. 31, 2009 USD / shares
Segment Reporting	14. Segment Reporting The Companys segments are based on the Companys method of internal reporting which classifies its operations by both geographic area and property type. The Companys segments by geographic area are Greater Boston, Greater Washington, DC, Midtown Manhattan, Greater San Francisco and New Jersey. Segments by property type include: ClassA Office, Office/Technical and Hotels. Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Interest and other income, development and management services, general and administrative expenses, interest expense, depreciation and amortization expense, loss from suspension of development, net derivative losses, losses (gains) from investments in securities, losses from early extinguishments of debt, income (loss) from unconsolidated joint ventures, gains on sales of real estate and other assets, income from discontinued operations, gains on sales of real estate from discontinued operations and noncontrolling interests are not included in Net Operating Income as internal reporting addresses these items on a corporate level. Net Operating Income is not a measure of operating results or cash flows from operating activities as measured by accounting principles generally accepted in the United States of America, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate Net Operating Income in the same manner. The Company considers Net Operating Income to be an appropriate supplemental measure to net income because it helps both investors and management to understand the core operations of the Companys properties. Information by geographic area and property type (dollars in thousands): For the year ended December31, 2009: Greater Boston Greater Washington, DC Midtown Manhattan Greater San Francisco New Jersey Total Rental Revenue: ClassA Office $ 364,064 $ 318,786 $ 441,571 $ 218,432 $ 63,189 $ 1,406,042 Office/Technical 30,655 16,230 46,885 Hotels 30,385 30,385 Total 425,104 335,016 441,571 218,432 63,189 1,483,312 % of Grand Totals 28.66 % 22.58 % 29.77 % 14.73 % 4.26 % 100.0 % Rental Expenses: ClassA Office 137,785 93,799 146,398 80,269 29,751 488,002 Office/Technical 9,475 4,322 13,797 Hotels 23,966 23,966 Total 171,226 98,121 146.398 80,269 29,751 525,765 % of Grand Totals 32.57 % 18.66 % 27.84 % 15.27 % 5.66 % 100.0 %

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share	15. Earnings Per Share Earnings per share (EPS) has been computed pursuant to the provisions of ASC 260-10 Earnings Per Share (ASC 260-10). During 2004, the Company adopted the guidance included in ASC 260-10 (formerly known as EITF 03-6 Participating Securities and the Two-Class Method under FASB 128 (EITF 03-6)), which provides further guidance on the definition of participating securities. Pursuant to the guidance included in ASC 260-10, the Operating Partnerships Series Two Preferred Units, which are reflected as Noncontrolling InterestsRedeemable Preferred Units of the Operating Partnership in the Companys Consolidated Balance Sheets, are considered participating securities and are included in the computation of basic and diluted earnings per share of the Company if the effect of applying the if-converted method is dilutive. The terms of the Series Two Preferred Units enable the holders to obtain OP Units of the Operating Partnership, as well as Common Stock of the Company.In June2008, the FASB issued guidance included in ASC 260-10 (formerly known as FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities (FSP EITF 03-6-1)). The guidance included in ASC 260-10 clarifies that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of EPS pursuant to the two-class method.The guidance included in ASC 260-10 requires the retrospective adjustment of all prior-period EPS data presented (including interim financial statements, summaries of earnings, and selected financial data) to conform with the provisions of the guidance. Early application was not permitted.As a result, the Companys unvested restricted stock, LTIP Units and 2008 OPP Units are considered participating securities and are included in the computation of basic and diluted earnings per share of the Company if the effect of applying the if-converted method is dilutive.The adoption of the guidance included in ASC 260-10 on January1, 2009 did not have a material impact on the Companys computation of EPS. Because the 2008 OPP Units require the Company to outperform absolute and relative return thresholds, unless such thresholds have been met by the end of the applicable reporting period, the Company excludes the 2008 OPP Units from the diluted EPS calculation. For the years ended December31, 2009 and 2008, the absolute and relative return thresholds for the 2008 OPP Units were not met and as a result the 2008 OPP Units have been excluded from the diluted EPS calculation. Other potentially dilutive common shares, including stock options, restricted stock and other securities of the Operating Partnership that are exchangeable for the Companys Common Stock, and the related impact on earnings, are considered when calculating diluted EPS. The following table provides a reconciliation of both the net income attributable to Boston Properties, Inc. and the number of common shares used in the computation of basic EPS, which is calculated by dividing net income attributabl

Employee Benefit Plans

Employee Benefit Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefit Plans	16. Employee Benefit Plans Effective January1, 1985, the predecessor of the Company adopted a 401(k) Savings Plan (the Plan) for its employees. Under the Plan, as amended, employees, as defined, are eligible to participate in the Plan after they have completed three months of service. Upon formation, the Company adopted the Plan and the terms of the Plan. Effective January1, 2000, the Company amended the Plan by increasing the Companys matching contribution to 200% of the first 3% from 200% of the first 2% of participants eligible earnings contributed (utilizing earnings that are not in excess of an amount established by the IRS ($245,000, $230,000 and $225,000 in 2009, 2008 and 2007, respectively), indexed for inflation) and by eliminating the vesting requirement. The Companys aggregate matching contribution for the years ended December31, 2009, 2008 and 2007 was $3.0 million, $2.7 million and $2.1 million, respectively. Effective January1, 2001, the Company amended the Plan to provide a supplemental retirement contribution to employees who have at least ten years of service on January1, 2001, and who are 40 years of age or older as of January1, 2001. The maximum supplemental retirement contribution will not exceed the annual limit on contributions established by the Internal Revenue Service. The Company will record an annual supplemental retirement credit for the benefit of each participant. The Companys supplemental retirement contribution and credit for the years ended December31, 2009, 2008 and 2007 was $122,000, $210,000 and $178,000, respectively. The Company also maintains a deferred compensation plan that is designed to allow officers of the Company to defer a portion of their current income on a pre-tax basis and receive a tax-deferred return on these deferrals. The Companys obligation under the plan is that of an unsecured promise to pay the deferred compensation to the plan participants in the future. At December31, 2009 and 2008, the Company has funded approximately $9.9 million and $6.6 million, respectively, into a separate account, which is not restricted as to its use. The Companys liability under the plan is equal to the total amount of compensation deferred by the plan participants and earnings on the deferred compensation pursuant to investments elected by the plan participants. The Companys liability as of December31, 2009 and 2008 was $9.8 million and $6.3 million, respectively, which are included in the accompanying Consolidated Balance Sheets.

Stock Option and Incentive Plan

Stock Option and Incentive Plan and Stock Purchase Plan
	12 Months Ended Dec. 31, 2009 USD / shares
Stock Option and Incentive Plan and Stock Purchase Plan	17. Stock Option and Incentive Plan and Stock Purchase Plan The Company has established a stock option and incentive plan for the purpose of attracting and retaining qualified employees and rewarding them for superior performance in achieving the Companys business goals and enhancing stockholder value. At the Companys 2007 annual meeting of stockholders held on May15, 2007, the Companys stockholders approved an amendment and restatement of the Companys 1997 Stock Option and Incentive Plan (the 1997 Plan) that, among other things, (1)increased the limit on full value shares (i.e., awards other than stock options) that may be issued under the Plan by 2,500,000 shares, (2)extended the term of the Plan to May15, 2017 and (3)added provisions that allow the Company to qualify certain grants under the Plan as performance-based compensation under Section162(m) of the Internal Revenue Code. Under the amended plan, the number of shares of Common Stock available for issuance is 4,019,174 shares. At December31, 2009, the number of shares available for issuance under the plan was 1,901,049, of which a maximum of 1,447,508 shares may be granted as awards other than stock options. Options granted under the plan became exercisable over a two-, three- or five-year period and have terms of ten years, as determined at the time of the grant. All options were granted at the fair market value of the Companys Common Stock at the dates of grant. As of January17, 2005, all outstanding options had become fully vested and exercisable. On January24, 2008, the Compensation Committee (the Committee) of the Board of Directors (the Board) of the Company approved outperformance awards under the 1997 Plan to officers and key employees of the Company. These awards (the 2008 OPP Awards) are part of a broad-based, long-term incentive compensation program designed to provide the Companys management team at several levels within the organization with the potential to earn equity awards subject to the Company outperforming and creating shareholder value in a pay-for-performance structure. 2008 OPP Awards utilize total return to shareholders (TRS) over a three-year measurement period as the performance metric and include two years of time-based vesting after the end of the performance measurement period (subject to acceleration in certain events) as a retention tool. Recipients of 2008 OPP Awards will share in an outperformance pool if the Companys TRS, including both share appreciation and dividends, exceeds absolute and relative hurdles over a three-year measurement period from February5, 2008 to February5, 2011, based on the average closing price of a share of the Companys common stock (a REIT Share) of $92.8240 for the five trading days prior to and including February5, 2008. The aggregate reward that recipients of all 2008 OPP Awards can earn, as measured by the outperformance pool, is subject to a maximum cap of $110 million, although only awards for an aggregate of up to approximately $104.8million have been granted to date. The balance remains available for future grants, with OPP awards exceeding a potential reward of $1 million requiring the Comm

Selected Interim Financial Info

Selected Interim Financial Information (unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Selected Interim Financial Information (unaudited)	18. Selected Interim Financial Information (unaudited) The tables below reflect the Companys selected quarterly information for the years ended December31, 2009 and 2008. The information provided has been revised for 2008 to reflect the adoption of (1)ASC 470-20 Debt with Conversion and Other Options (ASC 470-20) (formerly known as FSP No. APB 14-1) (See Note 8), (2)the guidance included in ASC 810 Consolidation (ASC 810) (formerly known as SFAS No.160) and ASC 480-10-S99 Distinguishing Liabilities from Equity (ASC 480-10-S99) (formerly known as EITF Topic No. D-98) (See Note 11) and (3)the guidance included in ASC 260-10 Earnings Per Share (ASC 260-10) (formerly known as FSP EITF 03-06-1) (See Note 15). 2009 Quarter Ended March31, June30, September30, December31, (in thousands, except for per share amounts) Total revenue $ 377,544 $ 389,490 $ 377,303 $ 377,912 Income from continuing operations $ 54,030 $ 80,073 $ 77,650 $ 62,746 Net income attributable to Boston Properties, Inc. $ 44,598 $ 67,152 $ 65,795 $ 53,317 Income attributable to Boston Properties, Inc. per sharebasic $ 0.37 $ 0.54 $ 0.47 $ 0.38 Income attributable to Boston Properties, Inc. per sharediluted $ 0.37 $ 0.53 $ 0.47 $ 0.38 2008 Quarter Ended March31, June30, September30, December31,(1) (in thousands, except for per share amounts) Total revenue $ 371,432 $ 368,680 $ 357,988 $ 390,300 Income (loss) from continuing operations $ 100,866 $ 90,125 $ 52,353 $ (112,621 ) Net income (loss) attributable to Boston Properties, Inc. $ 84,482 $ 75,483 $ 43,079 $ (98,063 ) Income (loss) attributable to Boston Properties, Inc. per sharebasic $ 0.71 $ 0.63 $ 0.36 $ (0.81 ) Income (loss) attributable to Boston Properties, Inc. per sharediluted $ 0.70 $ 0.62 $ 0.35 $ (0.81 ) (1) During the quarter ended December31, 2008, the Company recognized non-cash impairment charges of approximately $188.3 million on certain of its investments in unconsolidated joint ventures.

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Held for Sale/Discontinued Operations	19. Held for Sale/Discontinued Operations The Company applies the provisions of ASC 360 Property, Plant and Equipment (ASC 360) (formerly known as SFAS No.144 Accounting for the Impairment or Disposal of Long Lived Assets) The guidance in ASC 360 requires that long-lived assets that are to be disposed of by sale be measured at the lesser of (1)book value or (2)fair value less cost to sell. In addition, it requires that one accounting model be used for long-lived assets to be disposed of by sale and broadens the presentation of discontinued operations to include more disposal transactions. On January7, 2008, the Company transferred at cost Mountain View Research Park and Mountain View Technology Park to its Value-Added Fund for an aggregate of approximately $221.6 million. Due to the Companys continuing involvement through its ownership interest in the Value-Added Fund, these properties have not been categorized as discontinued operations in the accompanying Consolidated Statements of Operations. During the year ended December31, 2007, the Company sold the following operating properties: Orbital Sciences Campus and Broad Run Business Park, Building E, comprised of three ClassA office properties aggregating approximately 337,000 net rentable square feet and an office/technical property totaling approximately 127,000 net rentable square feet, respectively, located in Loudon County, Virginia; Democracy Center, a ClassA office complex totaling approximately 685,000 net rentable square feet located in Bethesda, Maryland; Newport Office Park, a ClassA office property totaling approximately 172,000 net rentable square feet located in Quincy, Massachusetts; Long Wharf Marriott, a 402-room hotel located in Boston, Massachusetts; and 5 Times Square, a ClassA office property totaling approximately 1,102,000 net rentable square feet located in New York City. Due to the Companys continuing involvement in the management, for a fee, of 5 Times Square through an agreement with the buyer and other financial obligations to the buyer, 5 Times Square has not been categorized as discontinued operations in the accompanying Consolidated Statements of Operations. Due to the Companys continuing involvement in the management, for a fee, of the Democracy Center property through an agreement with the buyer that was entered into at closing, this property is not categorized as discontinued operations in the accompanying Consolidated Statements of Operations. As a result, the gains on sales related to these properties have been reflected under the caption Gains on sales of real estate and other assets in the Consolidated Statements of Operations. The Company has presented the other properties listed above as discontinued operations in its Consolidated Statements of Operations for the year ended December31, 2007. The following table summarizes income from discontinued operations and the related realized gains on sales of real estate from discontinued operations for the years ended December31, 2009, 2008 and 2007: FortheYearEndedDecember31, 2009 2008 2007

Newly Issued Accounting Standar

Newly Issued Accounting Standards
	12 Months Ended Dec. 31, 2009 USD / shares
Newly Issued Accounting Standards	20. Newly Issued Accounting Standards In June 2008, the FASB ratified the guidance included in ASC 815-40 Derivatives and Hedging (ASC 815-40) (formerly known as EITF Issue No.07-5, Determining Whether an Instrument (or an Embedded Feature) Is Indexed to an Entitys Own Stock (EITFNo. 07-5)). The guidance included in ASC 815-40 requires entities to apply a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock. The guidance included in ASC 815-40 was effective on January1, 2009. The adoption of the guidance included in ASC 815-40 did not have a material impact on the Company. In April 2009, the FASB issued ASC 820-10-65-4 Transition Related to FASB Staff Position FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (ASC 820-10-65-4) (formerly known as FSP No.157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP FAS 157-4)). ASC 820-10-65-4 provides additional guidance for estimating fair value in accordance with ASC 820-10 when the volume and level of activity for the asset or liability have significantly decreased. ASC 820-10-65-4 also includes guidance on identifying circumstances that indicate a transaction is not orderly. ASC 820-10-65-4 was effective for interim and annual reporting periods ending after June15, 2009. The adoption of ASC 820-10-65-4 did not have a material impact on the Companys financial position or results of operations. In June 2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R) (SFAS No.167), which modifies the approach to determining the primary beneficiary of a variable interest entity (VIE) and requires companies to more frequently assess whether they must consolidate a VIE. SFAS No.167 is effective on the first annual reporting period that begins after November15, 2009. The Company is currently assessing the potential impact that the adoption of SFAS No.167 will have on its financial statements. In June2009, the FASB issued SFAS No.168, The FASB Accounting Standards Codificationand the Hierarchy of Generally Accepted Accounting Principles-a replacement of FASB Statement No.162 (SFAS No.168), which establishes the FASB Accounting Standards Codification (the Codification) as the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification superseded all then-existing non-SEC accounting and reporting standards.SFAS No.168 was effective for financial statements issued for interim and annual periods ending after September15, 2009. The adoption of SFAS No.168 did not have a material impact on the Company.

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009 USD / shares
Related Party Transactions	21. Related Party Transactions On October26, 2005, theCompany entered into an agreementwith anentity owned by Mr.Zuckerman. Under the agreement, which was approved by the disinterested members of the Companys Board of Directors, the Company rendered project management services to such entity in exchange for a fee. The Company extended its services under a letter dated October10, 2006. Under the agreement, as extended, the Company earned $0, $0 and $80,000 during the years ended December31, 2009, 2008 and 2007, respectively. A firm controlled by Mr.RaymondA. Ritcheys brother was paid aggregate leasing commissions of approximately $257,000, $2,219,000 and $848,000 for the years ended December31, 2009, 2008 and 2007, respectively, related to certain exclusive leasing arrangements for certain Northern Virginia properties. Mr.Ritchey is an Executive Vice President of Boston Properties, Inc. Mr.Martin Turchin, a member of the Companys Board of Directors, is a non-executive/non-director Vice Chairman of CB Richard Ellis (CBRE). Through an arrangement with CBRE and its predecessor, Insignia/ESG, Inc. that has been in place since 1985, Mr.Turchin and Turchin Associates, an entity owned by Mr.Turchin (95%)and his son (5%), participate in brokerage activities for which CBRE is retained as leasing agent, some of which involve leases for space within buildings owned by the Company. Additionally, Mr.Turchins son is employed by CBRE and works on transactions for which CBRE earns commission income from the Company. Mr.Turchins sons compensation from CBRE is in the form of salary and bonus, neither of which is directly tied to CBREs transactions with the Company. For the years ended December31, 2009, 2008 and 2007, Mr.Turchin, directly and through Turchin Associates, received commission income of $29,000, $138,000 and $95,000, respectively, from commissions earned by CBRE and its predecessor, Insignia/ESG, Inc., from the Company. Pursuant to its arrangement with CBRE, Turchin Associates has confirmed to the Company that it is paid on the same basis with respect to properties owned by the Company as it is with respect to properties owned by other clients of CBRE. Mr.Turchin does not participate in any discussions or other activities relating to the Companys contractual arrangements with CBRE either in his capacity as a member of the Companys Board of Directors or as a Vice Chairman of CBRE. On June30, 1998, the Company acquired from entities controlled by Mr.AlanB. Landis, a former director, a portfolio of properties known as the Carnegie Center Portfolio and Tower Center One and related operations and development rights (collectively, the Carnegie Center Portfolio). In connection with the acquisition of the Carnegie Center Portfolio, the Operating Partnership entered into a development agreement (the Development Agreement) with affiliates of Mr.Landis providing for up to approximately 2,000,000 square feet of development in or adjacent to the Carnegie Center office complex. An affiliate of Mr.Landis was entitled to a purchase price for each parcel developed under the Development Agreement calculated on the basis of $20 per rentable squa

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events	22. Subsequent Events In May 2009, the FASB issued ASC 855-10 Subsequent Events (ASC 855-10) (formerly known as SFAS No.165 Subsequent Events (SFAS No.165)), which establishes general standards of accounting and disclosure for events that occur after the balance sheet date but before the financial statements are issued. The guidance included in ASC 855-10 was effective for interim or annual periods beginning after June15, 2009. The Company has evaluated subsequent events through the time of filing these financial statements with the SEC on Form 10-K on February25, 2010. On January19, 2010, the Company paid $12.8 million related to the termination of a lease for its 250 West 55th Street project in New York City. The Company announced in February 2009 that it was suspending construction of the 1,000,000 square foot office project. During the first quarter of 2009, the Company recognized costs aggregating approximately $27.8 million related to the suspension of development, which amount included a $20.0 million contractual amount due pursuant to a lease agreement. On January29, 2010, the Company issued 66,461 shares of restricted stock and 248,833 LTIP Units under the 1997 Plan to certain employees of the Company.

Schedule 3-Real Estate and Accu

Schedule 3-Real Estate and Accumulated Depreciation
	12 Months Ended Dec. 31, 2009 USD / shares
Schedule 3-Real Estate and Accumulated Depreciation	Boston Properties, Inc. Schedule 3Real Estate and Accumulated Depreciation December31, 2009 (dollars in thousands) Costs Capitalized Subsequent to Acquisition Land and Improvements Building and Improvements Land Held for Development Development and Construction in Progress Total Accumulated Depreciation Year(s) Built/ Renovated Depreciable Lives(Years) Original Property Name Type Location Encumbrances Land Building Embarcadero Center Office SanFrancisco,CA $ 375,000 $ 179,697 $ 847,410 $ 263,427 $ 195,984 $ 1,094,550 $ $ $ 1,290,534 $ 324,299 1970/1989 (1 ) 399 Park Avenue Office New York, NY 339,200 700,358 77,623 354,107 763,074 1,117,181 134,738 1961 (1 ) Prudential Center Office Boston, MA 92,077 734,594 269,605 107,426 973,566 15,284 1,096,276 275,997 1965/1993/2002 (1 ) 601 Lexington Avenue (Citigroup Center) Office New York, NY 467,034 241,600 494,782 188,752 289,639 635,495 925,134 126,026 1977/1997 (1 ) Times Square Tower Office New York, NY 165,413 380,438 82,782 170,494 458,139 628,633 80,905 2004 (1 ) Carnegie Center Office Princeton, NJ 56,306 105,107 377,259 56,736 103,062 434,370 1,670 539,102 122,420 1983-1999 (1 ) 599 Lexington Avenue Office New York, NY 750,000 81,040 100,507 114,566 87,852 208,261 296,113 122,374 1986 (1 ) Gateway Center Office San Francisco, CA 28,255 139,245 49,246 30,627 186,119 216,746 51,672 1984/1986/2002 (1 ) South of Market Office Reston, VA 187,377 13,603 164,144 3,552 13,687 167,612 181,299 10,618 2008 (1 ) Reservoir Place Office Waltham, MA 50,000 18,605 92,619 29,234 20,118 120,340 140,458 41,866 1955/1987 (1 ) 3200 Zanker Road Office San Jose, CA 36,705 82,863 7,573 36,997 89,017 1,127 127,141 11,590 1988 (1 ) 1333 New Hampshire Avenue Office Washington, DC 34,032 85,660 7,383 35,382 91,693 127,075 20,660 1996 (1 ) Kingstowne Towne Center Office Alexandria, VA 59,387 18,021 109,038 (320 ) 18,062 108,677 126,739 11,983 2003-2006 (1 ) 505 9th Street Office Washington, DC 129,843 38,885 83,719 2,543 38,956 86,191 125,147 7,371 2007 (1 ) 1330 Connecticut Avenue Office Washington, DC 47,721 25,982 82,311 15,485 27,135 96,643 123,778 16,661 1984 (1 ) Capital Gallery Office Washington, DC 4,725

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 19, 2010	Jun. 30, 2009
Trading Symbol	BXP
Entity Registrant Name	BOSTON PROPERTIES INC
Entity Central Index Key	0001037540
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		138,965,804
Entity Public Float			$6,430,628,060